The Capital Markets Authority (CMA) has cautioned Kenyans against dealing with unregulated entities as cryptocurrency project Worldcoin continues to gain momentum in the Kenyan market.
Worldcoin, a blockchain company founded by OpenAI’s chief, Sam Altman, has attracted significant attention in Kenya by offering citizens free tokens in exchange for their iris scans. The tokens, known as WLD, are currently valued at $54. The allure of these tokens led thousands of Kenyans to participate in the project, despite some individuals admitting to having limited knowledge about cryptocurrency.
In a statement, the CMA said it has assessed the available public information concerning Worldcoin and notifies the public that Worldcoin is not regulated in Kenya.” Further, that Worldcoin-related products including crypto-tokens or their derivatives are not investment products within the scope of the Capital Markets Act and hence not under the regulatory purview of the CMA.”
“The public is further advised to be wary of potential fraudulent schemes that may emerge in the over-the-counter market of crypto tokens.”
Cognizant of the importance of Fintech and the benefits that can be derived from leveraging block chain technology, the Authority said it is willing to work with interested parties through the already established Regulatory Sandbox model for the purpose of supporting innovative Fintech products in a controlled and safe environment for the investing public.
The Government has already suspended all activities associated with the Worldcoin over data breach and privacy concerns.
Interior Cabinet Secretary Kindiki Kithuri said the suspension will remain in effect until relevant security, financial services, and data protection agencies can thoroughly investigate the authenticity and legality of Worldcoin’s activities.
Since its launch, people around the world have been flocking to registration sites to get their eyes scanned by a shiny spherical “orb”.
It is estimated that over 350,000 Kenyans had signed up for Worldcoin as of Tuesday, in exchange for free cryptocurrency tokens.
Kenya Suspends Worldcoin Amidst Data Breach Concerns – Kenyan Wallstreet
